Instacart to pay $60 million in FTC settlement

Instacart will pay 60 million dollars To resolve allegations by the Federal Trade Commission that it misled users with false advertising and employed “illegal subscription sign-up” practices.

federal agency alleged He said Instacart used deceptive tactics in its subscription signup and “satisfaction guarantee” ads that caused consumers to pay more and prevented them from receiving refunds.

For example, the FTC said Instacart mistakenly delayed promising consumers “free delivery” on their first orders, while shoppers still had to pay a mandatory service fee to get their groceries delivered.

The FTC also said Instacart falsely advertised full refunds for users who had problems with their orders.

“Instacart misled consumers by advertising free delivery services and then charging consumers for groceries and failing to disclose to consumers who signed up for a free trial that they would automatically be enrolled in the subscription program,” FTC Consumer Protection Bureau Director Christopher Mufarrige said in a statement. he said.

Inside a blog postInstacart acknowledged the FTC settlement but denied “any allegations of wrongdoing by the agency.”

The grocery delivery platform said it uses “simple marketing, transparent pricing and fees, clear terms, easy cancellation and generous refund policies” that comply with the law.

“This agreement allows us to move forward and focus on what’s important to our company: delivering value for customers, shoppers, and retail and brand partners in the communities we serve,” an Instacart spokesperson said. he said.

The move comes as Instacart reportedly faces A separate investigation into pricing practices by the FTC.

The investigation was launched following the publication last week of a large-scale study showing that algorithmic pricing tools caused shoppers to pay different prices for the same items at the same store.

News of the FTC investigation sent Instacart shares down nearly 7% in extended trading Wednesday. The stock closed down more than 1 percent on Thursday.

FTC recently increased its control Number of companies allegedly using misleading billing and registration schemes.

filed a lawsuit Uber In April, it alleged that the ride service provider was charging users for Uber One subscriptions without their consent. On Monday, 21 states participated the agency’s lawsuit as part of an amended complaint.

The agency filed a lawsuit in September Live Nation and allegedly using Ticketmaster. bait-and-switch pricing tactics and illegal collusion with ticket brokers.

FTC earlier this month in question It was sending more than $27.6 million to consumers who unwittingly signed up for and were charged for plans that shipped products marketed to promote weight loss, clear skin and other health benefits.